BILL NUMBER: AB 150	CHAPTERED  09/27/99

	CHAPTER   479
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 24, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 8, 1999
	AMENDED IN SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 3, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999
	AMENDED IN SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   JULY 8, 1999
	AMENDED IN SENATE   JUNE 16, 1999
	AMENDED IN SENATE   JUNE 7, 1999
	AMENDED IN SENATE   MAY 11, 1999

INTRODUCED BY   Assembly Members Aroner, Cunneen, Kuehl, and
Villaraigosa
   (Coauthors:  Senators Bowen, Escutia, and Speier)

                        JANUARY 15, 1999

   An act to amend Section 17710 of the Family Code, to amend and
repeal Section 15200.95 of, and to repeal and add Chapter 4
(commencing with Section 10080) of Part 1 of Division 9 of, the
Welfare and Institutions Code, and to amend Item 5180-001-0001 of the
Budget Act of 1999, relating to child support, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 150, Aroner.  California Child Support Automation System.
   Existing law requires the California Health and Human Services
Agency and the State Department of Social Services to develop a
linked statewide automated consortium-based data-processing and
information retrieval system for the purpose of child support
enforcement, provides for the implementation of specified data
systems, and provides for the participation of eligible county
consortiums.
   Existing law also requires that California's child support
automation system meets federal automation requirements and subjects
the state to the payment of penalties for any failure to meet these
requirements by specified dates pursuant to federal law.
   This bill would require the state agency designated as the single
state agency responsible for operating the child support enforcement
program, through the Franchise Tax Board as its agent, to be
responsible for procuring, developing, implementing, and maintaining
the operation of the California Child Support Automation System in
all California counties.
   The bill would also specify the procedures by which each county
would pay the nonfederal share of the administrative expenses of the
program and would allocate to each county, except Los Angeles County,
a proportionate reduction in the payment of these costs based on the
payment of any federal penalty for the failure of the child support
automation system to meet federal automation requirements.  It would
provide that money from the General Fund would be used to supplant
the reduction to state funding as a result of the federal penalty, up
to 100% of the reduction, subject to conditions specified by the
department and the Department of Finance, and subject to the
appropriation of funds in the annual Budget Act.  By requiring
counties to participate in the program, the bill would result in a
state-mandated local program.
   This bill would appropriate $95,500,000 from the General Fund to
the State Department of Social Services for the state payment of
penalties, otherwise allocated to each county, being held in abeyance
pursuant to the bill.  It would also appropriate $6.6 million from
the General Fund to the Franchise Tax Board for purposes of
implementing and administering this bill.
   The bill would provide for the reallocation of funds appropriated
in the 1999 Budget Act for purposes of this act, and, by providing
for the reallocation of those funds, this bill would result in an
appropriation.
   The bill would provide for the reversion of certain unexpended and
unencumbered child support incentive funds to the General Fund.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
  This bill would declare that it is to take effect immediately as an
urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 17710 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
   17710.  (a) Each county shall be responsible for any
administrative expenditures for administering the child support
program not covered by federal and state funds.
   (b) Notwithstanding subdivision (a), effective July 1, 1991, to
June 30, 1992, inclusive, counties shall pay the nonfederal share of
the administrative costs of conducting the reviews required under
Section 15200.8 of the Welfare and Institutions Code from the savings
counties will obtain as a result of the reduction in the maximum aid
payments specified in Section 11450.  Effective July 1, 1992, to
June 30, 1993, inclusive, the state shall pay the nonfederal share of
administrative costs of conducting the reviews required under
Section 15200.8 of the Welfare and Institutions Code.  Funding for
county costs after June 30, 1993, shall be subject to the
availability of funds in the annual Budget Act.
   (c) If the federal government imposes a penalty on California's
child support program for the failure to meet the October 1, 1997,
deadline for the implementation of an automated child support
enforcement system required by the federal Family Support Act of 1988
(P.L. 100-485), no portion of any penalty imposed by the federal
government for the period of October 1, 1997, to the date of
enactment of the act adding this subdivision shall be assessed
against Los Angeles County.
  SEC. 1.5.  Chapter 4 (commencing with Section 10080) of Part 1 of
Division 9 of the Welfare and Institutions Code is repealed.
  SEC. 2.  Chapter 4 (commencing with Section 10080) is added to Part
1 of Division 9 of the Welfare and Institutions Code, to read:

      CHAPTER 4.  CALIFORNIA CHILD SUPPORT AUTOMATION SYSTEM

   10080.  (a) The Legislature finds and declares the following:
   (1) The failure of the Statewide Automated Child Support System
(SACSS) has left California without a statewide automated child
support system as required by federal law and subjects the state to
significant federal penalties.
   (2) Statewide uniformity of child support enforcement practices
and procedures is essential to an effective child support enforcement
program.
   (3) A single statewide automated child support system promotes
uniformity and supports a child support collection system that keeps
children out of poverty and reduces welfare costs.  Successful
implementation of a single statewide child support system is critical
to the welfare of California and its children.
   (4) The federal government has informed the state that the
proposed consortia-based alternative system configuration submitted
by the state for approval does not meet the criteria required by
federal law.
   (5) The federal government has informed the state that it intends
to disapprove the state's child support (Title IV-D) plan because the
state has failed to timely implement a State Disbursement Unit as
required by federal law.  Disapproval of the state IV-D plan may
result in the state's ineligibility for a federal Temporary
Assistance to Needy Families (TANF) block grant under Title IV-A of
the Social Security Act jeopardizing the receipt of billions of
dollars of federal funds.
   (b) It is, therefore, the intent of the Legislature to:
   (1) Establish a single statewide automated child support system
that complies with all federal certification requirements, federal
and state laws and policies, meets Year 2000 requirements, and
ensures child support collections will continue to increase.
   (2) Ensure that all counties will have an automation system that
will allow them to continue their child support services while a
single statewide automated child support system is developed and
implemented.
   (3) Designate the Franchise Tax Board, as an agent for the
department, as the entity responsible for the procurement,
development, implementation, and maintenance of the single statewide
automated system in accordance with the state's child support (Title
IV-D) plan.
   (4) Ensure that the single statewide automated system project will
be completed successfully and in the most expeditious manner
possible through the cooperation of all affected state agencies.
   (5) Ensure county participation and compliance with the single
statewide automated system by providing for the sharing of federal
penalties.
   (6) Avoid the repetition of the practices that led to the failure
of the SACSS system and to require the department to ensure that
procedures are in place to prevent the repetition of those practices.

   10081.  The definitions contained in this section shall govern the
construction of this chapter, unless the context requires otherwise:

   (a) "Annual automation cooperation agreement" or "AACA" means an
agreement between a county and the department, developed in
consultation with the Franchise Tax Board, that specifies the
responsibilities, activities, milestones, and consequences in regard
to automation and that provides the authority for the department to
pass through automation funding to the counties.
   (b) "California Child Support Automation System" means a single
automated child support system operative in all California counties
and includes the State Case Registry, the State Disbursement Unit,
and all other necessary data bases and interfaces.
   (c) "Consortia" means one or more counties that have entered into
an agreement to jointly use and maintain a common automated child
support system.
   (d) "Department" means the state agency designated as the single
state agency responsible for operating the child support enforcement
program.
   (e) "Director" means the director of the state agency designated
as the single state agency responsible for operating the child
support enforcement program.
   (f) "Local child support agency" means the county department
established pursuant to Section 17304 of the Family Code.
   (g) "Work plan" means a comprehensive document developed by a
county that is used to manage its activities toward statewide
automation.  The work plan shall include, but not be limited to, all
tasks, timelines, resources, and critical milestones necessary to
complete the county's project responsibilities and any other
provision specified by the department.
   10082.  (a) The department, through the Franchise Tax Board as its
agent, shall be responsible for procuring, in accordance with
Section 10083, developing, implementing, and maintaining the
operation of the California Child Support Automation System in all
California counties.  This project shall, to the extent feasible, use
the same sound project management practices that the Franchise Tax
Board has developed in successful tax automation efforts.  The single
statewide system shall be operative in all California counties and
shall also include the State Case Registry, the State Disbursement
Unit and all other necessary data bases and interfaces.  The system
shall provide for the sharing of all data and case files,
standardized functions across all of the counties, timely and
accurate payment processing and centralized payment disbursement from
a single location in the state.  The system may be built in phases
with payments contingent on acceptance of agreed upon deliverables.
As appropriate, additional payments may be made to the vendors for
predefined levels of higher performance once the system is in
operation.
   (b) All ongoing interim automation activities apart from the
procurement, development, implementation, and maintenance of the
California Child Support Automation System, including Year 2000
remediation efforts and system conversions, shall remain with the
department, in consultation with the Health and Welfare Data Center,
and shall not be the responsibility of the Franchise Tax Board.
However, the department shall ensure that all interim automation
activities are consistent with the procurement, development,
implementation, and maintenance of the California Child Support
Automation System by the Franchise Tax Board through the project
charter described in Section 10083 and through continuous
consultation.
   (c) The department shall seek, at the earliest possible date, all
federal approvals and waivers necessary to secure financial
participation and system design approval of the California Child
Support Automation System.
   (d) The department shall seek federal funding for the maintenance
and operation of all county child support automation systems until
the time that the counties transition to the California Child Support
Automation System.
   (e) The department shall direct local child support agencies, if
it determines it is necessary, to modify their current automation
systems or change to a different system, in order to meet the goal of
statewide automation.
   (f) Notwithstanding any state policies, procedures, or guidelines,
including those set forth in state manuals, all state agencies shall
cooperate with the Franchise Tax Board to expedite the procurement,
development, implementation, and operation of the California Child
Support Automation System and shall delegate to the Franchise Tax
Board, to the full extent possible, all functions including
acquisition authority as provided in Section 12102 of the Public
Contract Code, that may assist the Franchise Tax Board.  All state
agencies shall give review processes affecting the single statewide
automation system their highest priority and expedite these review
processes.
   (g) The Franchise Tax Board shall employ the expertise needed for
the successful and efficient implementation of the single statewide
child support automation system and, therefore, shall be provided
three Career Executive Assignment Level 2 positions, and may enter
into personal services agreements with one or more persons, at the
prevailing market rates for the kind or quality of services
furnished, provided the agreements do not cause the net displacement
of civil service employees.
   (h) All funds appropriated to the Franchise Tax Board for purposes
of this chapter shall be used in a manner consistent with the
authorized budget without any other limitations.
   (i) The department and the Franchise Tax Board shall consult with
local child support agencies and child support advocates on the
implementation of the single statewide child support automation
system.
   (j) (1) Notwithstanding the provisions of the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code), through December
31, 2000, the department may implement the applicable provisions of
this chapter through family support division letters or similar
instructions from the director.
   (2) The department may adopt regulations to implement this chapter
in accordance with the Administrative Procedure Act, Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.  The adoption of any emergency regulation filed
with the Office of Administrative Law on or before January 1, 2003,
shall be deemed to be an emergency and necessary for the immediate
preservation of the public peace, health, and safety or general
welfare.  These emergency regulations shall remain in effect for no
more than 180 days.
   10083.  (a) The Franchise Tax Board, as agent for the department,
shall develop a procurement plan that employs, where appropriate,
techniques proven to be successful in the Franchise Tax Board's
previous technology efforts and incorporates where possible best
practices from other government jurisdictions.  The procurement plan
shall consider the events and circumstances that contributed to the
failure of the SACSS system and incorporate a strategy for avoiding
the repetition of those events and circumstances and shall consider
the findings and recommendations made by the Bureau of State Audits
in its evaluation of the failure of the SACSS system.
   (b) Prior to procurement, the department and the Franchise Tax
Board shall develop a project charter that shall be approved by the
Executive Officer and Director of the Franchise Tax Board, the
director of the department, and the Secretary of the California
Health and Human Services Agency.  The project charter shall include
governance structure, business requirements, project scope,
performance measures, contract authority, and all other elements the
department and the Franchise Tax Board deem necessary to successfully
manage the procurement, development, implementation, and operation
of the California Child Support Automation System.
   (c) The procurement plan, subject to federal approval, shall
include, but not be limited to elements, that accomplish the
following tasks:
   (1) Provide for full and open competition among qualified vendors.
  Vendors shall be prequalified based on factors such as successful
past performance and implementation of similar systems in other
government jurisdictions.
   (2) Specify business outcomes to be achieved, not the solution to
be provided.
   (3) Allow a period of confidential discussion and discovery to
develop and refine potential solutions to best meet the business
needs.
   (4) Maximize the potential for competition and reduce time for
implementation by phasing in the project to the greatest extent
possible.
   (5) Structure the plan to maintain maximum vendor commitment to
project success and minimize risk to the state by sharing risk with
the private sector.
   (6) Utilize "best value" evaluation methods, which means to select
the solution based upon achieving the best solution based on
business performance measures not necessarily the lowest price.
   (7) Consider the future ability of the selected system to provide
enhancements that will improve long-term effectiveness of child
support management.
   (8) Base payments to the vendors primarily on achieving predefined
performance measures.
   (d) The California Child Support Automation System shall
incorporate technology that can be readily enhanced and modernized
for the expected system life.  In selecting the new system,
consideration shall be given to the extent to which the candidate
systems employ open architectures and standards.
   (e) Notwithstanding any other provision of law, the department, or
the Franchise Tax Board, or its designee may contract with existing
child support consultants to provide their current and related
services and project management through the life of the child support
automation project to help meet legislative timeframes, consistent
with the requirements of Article 7 of the California Constitution.
   (f) Notwithstanding any other provision of law, the procurements
for all design, development, implementation, maintenance, and
operation of the California Child Support Automation System and any
bid protest conducted under this chapter shall be subject to the
following procedures:
   (1) The Executive Officer of the Franchise Tax Board, or his or
her designee, may consider and decide initial protests.  A decision
regarding initial protests shall be final.
   (2) A contract may be entered into pending a final decision on a
protest.  The protest shall not prevent the commencement of work in
accordance with the terms of the contract awarded.
   (3) Protests shall be limited to participating bidders.
   (4) A protest shall be filed within five days of the posting of
the notice of the award.  The Department of General Services shall
review a protest within seven days of the filing date.  If the
Department of General Services finds that a protest is clearly
insufficient on its face, entirely without merit, or outside the
scope of permissible protest, it may make a final disposition of the
protest.
   (5) The Director of General Services shall issue a ruling within a
period not to exceed 45 days from the date the protest is filed.
   (6) Grounds to protest under this section shall be limited to
violations of the solicitation procedures resulting in the protestant'
s proposal not being selected.  These grounds shall be stated in the
solicitation document with the protest procedures.
   (7) Any bidder that has filed a protest that is determined by the
Department of General Services to be clearly insufficient on its
face, entirely without merit, or outside the scope of permissible
protest shall not be eligible to participate in solicitations
conducted under this section.
   (g) To protect public confidence in the integrity of the
procurements described in this section, the State Auditor shall
monitor the evaluation and selection process and must certify that
the evaluation was based on the evaluation criteria contained in the
solicitation document, that the vendor or vendors were chosen
according to the selection methodology in the solicitation document
and that both of these activities were carried out without bias or
favoritism toward any bidder.
   10084.  (a) The department shall be responsible for requiring each
local child support agency to cooperate in establishing the
California Child Support Automation System in every county.  This
requirement shall include taking steps necessary to facilitate the
transition from interim systems to the California Child Support
Automation System, including those modifications to current systems
as the department may require in subdivision (d) of Section 10082.
   (b) The department shall require each local child support agency,
by December 1, 1999, and each December 1 thereafter, to enter into an
annual automation cooperation agreement (AACA) with the department.
The department, in consultation with the Franchise Tax Board, shall
specify the terms of the agreement.
   (c) Each local child support agency shall develop and submit a
work plan to the department by the dates specified by the department
in the AACA.
   (d) If the AACA needs to be amended due to a change in state or
federal law, regulations, or policy, each local child support agency
must enter into an amended AACA as required by the department.
   (e) A local child support agency shall not receive any state
General Fund moneys or federal funds for child support automation
efforts for any period in which the department has found that the
local child support agency has failed to do any of the following:
   (1) Enter into an AACA.
   (2) Develop, submit, or comply with their work plan.
   (3) Enter into an amended AACA when required by the department.
   (4) Comply with any other provision of the AACA.
   10085.  (a) (1) Automation costs for county interim systems shall
be funded with General Fund incentive funds available pursuant to
paragraph (1) of subdivision (b) of Section 15200.81 prior to the
funding of administrative costs pursuant to clause (I) of
subparagraph (B) of paragraph (2) of subdivision (b) of Section
15200.81.
   (2) Automation costs for county interim systems shall be funded
with General Fund incentive funds available pursuant to paragraph (1)
of subdivision (b) of Section 17704 of the Family Code prior to the
funding of administrative costs pursuant to clause (I) of
subparagraph (B) of paragraph (2) of subdivision (b) of Section 17704
of the Family Code.
   (3) Paragraph (2) shall only become operative if Assembly Bill 196
of the 1999-2000 Regular Session becomes operative January 1, 2000,
in which case paragraph (1) shall be operative only until the
operative date of Assembly Bill 196, at which time paragraph (2)
shall become operative.
   (b) To the extent funds are provided in the annual Budget Act, the
state shall be responsible for funding the development and
procurement of the California Child Support Automation System, all
costs of transitioning the local child support agencies from their
existing child support automation systems to that system, and all of
the nonfederal share of local child support agencies' interim
automation costs, which may include the following:
   (1) Data cleanup and conversion activities, training costs, and
costs associated with the development of county interfaces, as
defined by the department.
   (2) Costs associated with ongoing maintenance and operations, as
specified by the department.
   (3) Enhancement costs related to state and federal mandates, as
specified by the department.
   (4) Enhancement costs related to Year 2000 requirements, as
specified by the department.  For any local child support agency that
does not develop a Year 2000 remediation plan approved by the
department, according to standards developed by the department, and
does not make progress on the approved work plan, no state funds
shall be available.
   (5) Enhancement costs required to meet the distribution
requirements contained in Public Law 104-193 and any subsequent
amendments to the distribution requirements, as specified by the
department.
   (6) Any other costs as deemed necessary by the department to
ensure that local child support agencies can continue operating
essential interim automation systems.
   (c) (1) Automation costs under this chapter shall not be
considered county administrative costs described in Section 15200.81.

   (2) Automation costs under this chapter shall not be considered
county administrative costs described in Section 17704 of the Family
Code.
   (3) Paragraph (2) shall only become operative if Assembly Bill 196
of the 1999-2000 Regular Session becomes operative January 1, 2000,
in which case paragraph (1) shall be operative only until the
operative date of Assembly Bill 196, at which time paragraph (2)
shall become operative.
   (d) Notwithstanding any other provision of law, no local child
support agency may enhance or expand a child support automation
system unless specifically authorized by the director, in writing,
after having made a finding that the enhancement or expansion costs
are necessary to maintain existing levels of service, accommodate
changes in state or federal law, or will result in increased
short-term program performance and is otherwise cost-effective.  The
director shall respond within 60 days to the request for
authorization.
   10086.  If the state pays on behalf of a county child support
automation costs that are otherwise the responsibility of the county,
the state may recover these payments through billing the county or
offset of amounts from any state payments due to the county after
consulting with the county on the recovery methodology.
   10087.  To the extent that funds are provided in the annual Budget
Act, the state shall pay all of the federal share of local child
support agency child support automation costs that are unfunded by
the federal government. The department shall establish the criteria
under which these costs shall be paid to each local child support
agency.  Criteria shall include, but are not limited to, the
following:  The local child support agency's compliance with the
requirements to enter into an AACA with the department; the local
child support agency's development, submission, and compliance with
its approved work plans; the local child support agency's action to
enter into an amended AACA when required by the department; and the
local child support agency's compliance with all of the provisions of
the AACA.
   10088.  (a) If the federal government imposes a penalty on
California's child support program for failure to meet the federal
automation requirements, the penalty, for purposes of this chapter,
shall be considered a reduction of federal financial participation in
county and state administrative costs of the child support program,
and shall be allocated to each local child support agency in
proportion to its administrative costs.  In such a case, the
department may hold penalties in abeyance and supplant any dollar
reduction to county administrative funding, up to 100 percent of the
reduction, subject to the availability of funds in the annual Budget
Act.  The department and the Department of Finance shall establish
criteria under which the penalties may be held in abeyance to each
local child support agency. Criteria for which these penalties may be
held in abeyance include, but are not limited to, the following:
The local child support agency has entered into an AACA with the
department; the local child support agency is meeting all due dates
in its work plan, including steps to resolve any Year 2000 problems;
the local child support agency has resolved any federal distribution
requirement problems; and the county is otherwise cooperating in its
current automation and AACA requirements and establishing the
California Child Support Automation System.
   (b) Any local child support agency that receives a reduction in
federal funding as a result of the imposition of a federal penalty
shall continue to comply with state and federal law and all
requirements of the state plan and plans of cooperation, including
the AACA.
   10090.  The department and the Franchise Tax Board shall provide,
at least twice annually, written or oral reports on the development
and implementation of the California Child Support Automation System
to interested persons and organizations, which shall include the
California State Association of Counties, the California Family
Support Council, members of the Legislature, and child support
advocacy groups.
   10091.  (a) The department, in consultation with the Franchise Tax
Board, shall be responsible for establishing timelines for the
development and implementation of the California Child Support
Automation System.  The initial timeline shall address all
procurement activities through award of the contracts.  A second
timeline shall be established covering development and implementation
activities once the contract award has been made to the selected
vendors.  All timelines shall incorporate discrete development
milestones that are enforceable and provide reliable progress
indications.
   (b) The department and the Franchise Tax Board shall report
progress against the established timelines during the annual budget
hearing process.
   10092.  (a) The department, in consultation with the Franchise Tax
Board, shall provide uniform statewide training at appropriate
intervals to best train state and local child support agency
employees on the use and application of the California Child Support
Automation System.
   (b) The department, in consultation with the Franchise Tax Board,
shall develop a training and reference manual to be disseminated to
all local child support agencies for employee use.
   10093.  The provisions of this chapter are severable.  If any
provision of this chapter or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
                                                            SEC. 3.
Section 15200.95 of the Welfare and Institutions Code is amended to
read:
   15200.95.  (a) Each county shall be responsible for its nonfederal
share of administrative expenditures for administering the child
support program.
   (b) Notwithstanding subdivision (a), effective July 1, 1991, to
June 30, 1992, inclusive, counties shall pay the nonfederal share of
the administrative costs of conducting the reviews required under
Section 15200.8 from the savings counties will obtain as a result of
the reduction in the maximum aid payments specified in Section 11450.
  Effective July 1, 1992, to June 30, 1993, inclusive, the state
shall pay the nonfederal share of administrative costs of conducting
the reviews required under Section 15200.8.  Funding for county costs
after June 30, 1993, shall be subject to the availability of funds
in the annual Budget Act.
   (c) If the federal government imposes a penalty on California's
child support program for the failure to meet the October 1, 1997,
deadline for the implementation of an automated child support
enforcement system required by the federal Family Support Act of 1988
(P.L. 100-485), no portion of any penalty imposed by the federal
government for the period of October 1, 1997, to the date of
enactment of the act adding this subdivision shall be assessed
against Los Angeles County.  Pursuant to this subdivision, any
portion of the penalties not allocated to Los Angeles County shall be
paid from the General Fund, upon appropriation by the Legislature,
and shall not be allocated to any other county.
   (d) This section shall remain operative only until the operative
date of Assembly Bill 196 of the 1999-2000 Regular Session, at which
time this section is repealed.
  SEC. 4.  The sum of ninety-five million five hundred thousand
dollars ($95,500,000) is hereby appropriated from the General Fund to
the State Department of Social Services, in augmentation of Item
5180-141-0001 of the Budget Act of 1999, for the state payment of
penalties, otherwise allocated to each county, being held in abeyance
pursuant to subdivision (a) of Section 10088 of the Welfare and
Institutions Code.
  SEC. 5.  For purposes of implementing and administering this act in
the 1999-2000 fiscal year, the sum of six million six hundred
thousand dollars ($6,600,000) is hereby appropriated from the General
Fund to the Franchise Tax Board, in augmentation of Item
1730-001-0001 of the Budget Act of 1999.  Of the amount appropriated,
34 percent shall be paid from the General Fund and 66 percent shall
be paid through federal reimbursement.  It is the intent of the
Legislature that the funds to administer this act for the 2000-01
fiscal year, and each fiscal year thereafter, shall be provided for
in the annual Budget Act.  In the event an appropriation is not fully
expended by the Franchise Tax Board during the fiscal year for which
it was appropriated, the unexpended appropriated amount shall be
carried over to, and expended in, the following fiscal year if
expended for the purpose for which it was originally appropriated.
The appropriated funds shall not be reduced or redirected away from
the purpose for which they were appropriated without the prior
approval of the Director of Finance.  The director shall not approve
any such reduction or redirection sooner than 30 days after providing
notification to the Joint Legislative Budget Committee.
  SEC. 6.  (a) Any funds referenced in subdivision (a) of Section
17714 of the Family Code and subdivision (a) of Section 15200.97 of
the Welfare and Institutions Code that have been or are to be paid to
a county for any fiscal year through the 1998-99 fiscal year,
including interest earned on those funds, that have not been expended
or encumbered, as defined by standards developed by the State
Department of Social Services, by September 1, 1999, or are not part
of a written plan approved by the department under subdivision (c) of
Section 17714 of the Family Code or subdivision (c) of Section
15200.97 of the Welfare and Institutions Code, shall revert to the
General Fund.  In addition, and notwithstanding subdivision (b) of
Section 15200.81 of the Welfare and Institutions Code or Section
17704 of the Family Code, as of June 30, 2000, the child support
incentive funds appropriated in Item 5180-101-0001 of the Budget Act
of 1999 that have not been allocated for program administrative costs
pursuant to Section 15200.81 of the Welfare and Institutions Code or
Section 17704 of the Family Code, and that otherwise would have been
used to fund incentive payments, shall revert to the General Fund.
   (b) The auditor and controller of each county shall calculate the
amount of unexpended and unencumbered funds based on standards
determined by the department.  The auditor and controller shall
certify that amount in a report submitted to the department by
December 1, 1999.
   (c) The department shall notify each county of the amount to be
reverted to the General Fund.  Within 30 days of notification, the
county shall remit that amount to the department.
   (d) The department shall contract with the Department of Finance
for the audit of county child support funds, including, but not
limited to, prior year funds subject to reversion to the General Fund
and current funding uses.
  SEC. 7.  (a) Any funds referenced in subdivision (a) of Section
15200.97 of the Welfare and Institutions Code that have been or are
to be paid to a county for any fiscal year through the 1998-99 fiscal
year, including interest earned on those funds, that have not been
expended or encumbered, as defined by standards developed by the
State Department of Social Services, by September 1, 1999, or are not
part of a written plan approved by the department under subdivision
(c) of Section 15200.97 of the Welfare and Institutions Code, shall
revert to the General Fund.  In addition, and notwithstanding
subdivision (b) of Section 15200.81 of the Welfare and Institutions
Code, as of June 30, 2000, the child support incentive funds
appropriated in Item 5180-101-0001 of the Budget Act of 1999 that
have not been allocated for program administrative costs pursuant to
Section 15200.81 of the Welfare and Institutions Code, and that
otherwise would have been used to fund incentive payments, shall
revert to the General Fund.
   (b) The auditor and controller of each county shall calculate the
amount of unexpended and unencumbered funds based on guidelines
determined by the department.  The auditor and controller shall
certify that amount in a report submitted to the department by
December 1, 1999.
   (c) The department shall notify each county of the amount to be
reverted to the General Fund.  Within 30 days of notification, the
county shall remit that amount to the department.
   (d) The department shall contract with the Department of Finance
for the audit of county child support funds, including, but not
limited to, prior year funds subject to reversion to the General Fund
and current funding uses.
  SEC. 8.  Section 6 of this act shall become operative only if
Assembly Bill 196 of the 1999-2000 Regular Session is chaptered and
adds Sections 17704 and 17714 to the Family Code, in which case
Section 7 of this act shall not become operative.
  SEC. 9.  Upon the request of the Department of Child Support
Services or the Health and Human Services Agency, the Department of
Social Services, with the approval of the Department of Finance,
shall transfer Budget Act of 1999 state operations and local
assistance appropriation authority and positions to the Department of
Child Support Services.  These transfers shall not exceed the
budgeted amounts for child support in the following Budget Act Items:
  5180-001-0001, 5180-002-0001, 5180-002-0890, 5180-101-0001,
5180-101-0890, 5180-141-0001, and 5180-141-0890.  The Department of
Finance shall implement the approved transfers by Executive Order,
and the transferred amounts shall be deemed part of the Budget Act of
1999 and subject to the provisions thereof.
  SEC. 10.  Upon the request of the Franchise Tax Board and the
Department of Social Services, the Department of Finance shall
transfer Budget Act of 1999 state operations and local assistance
appropriation authority and positions related to development and
procurement of a single statewide automated child support system from
Items 5180-001-0001, 5180-001-0890, 5180-141-0001, and 5180-141-0890
to the Franchise Tax Board in augmentation of Item 1730-001-0001 for
the purpose of implementing this act.  The Department of Finance
shall make conforming transfers and adjustments to the Budget Act of
1999 appropriations and position authority for the Health and Welfare
Agency Data Center.  The Department of Finance shall implement these
approved transfers and adjustments by Executive Order.  The
Franchise Tax Board shall separately account for funds transferred
and appropriated for the purposes of this act.  The Franchise Tax
Board shall delegate all necessary authority to the executive officer
to ensure the expeditious and effective completion of this project.

  SEC. 11.  Item 5180-001-0001 of the Budget Act of 1999 is amended
to read:



5180-001-0001--For support of Department of Social
    Services ........................................    79,775,000
    Schedule:
    (a) 16-Welfare Programs .............  79,066,000
    (b) 25-Social Services and Licens-
        ing ............................. 124,862,000
    (c) 35-Disability Evaluation and
        Other Services .................. 186,523,000
    (d) 60.01-Administration ............  34,255,000
    (e) 60.02-Distributed Administra-
        tion ............................ -34,054,000
    (f) Reimbursements .................. -16,360,000
    (g) Amount payable from Foster
        Family Home and Small Family
        Home Insurance Fund (Item
        5180-001-0131) ..................  -3,000,000
    (h) Amount payable from the Federal
        Trust Fund (Item
        5180-001-0890) ..................-291,517,000
    Provisions:
    1.  The Department of Finance may authorize the
        transfer of funds from Schedule (b) of this
        item to Schedule (c), Program 25.45, of Item
        5180-151-0001, Community Care Licensing, in
        order to allow counties to perform the
        facilities evaluation function.
    2.  The Department of Finance may authorize the
        transfer of funds from Schedule (b) of this
        item to Schedule (a)(2), Program 25.25.020,
        of Item 5180-151-0001, Adoptions, in order
        to allow counties to perform the adoptions
        program function.
    3.  Nonfederal funds appropriated in this item
        which have been budgeted to meet the
        state's Temporary Assistance for Needy
        Families maintenance-of-effort requirement
        established pursuant to the federal
        Personal Responsibility and Work Opportunity
        Reconciliation Act of 1996 (P.L. 104-193)
        may not be expended in any way that would
        cause their disqualification as a federally
        allowable maintenance-of-effort expenditure.
    4.  Of the amount appropriated in this item,
        $1,000,000 shall be allocated on a one-time
        basis to local food bank programs to expand
        refrigeration space, purchase vehicles, or
        purchase other equipment that would be
        directly used for the purchase, delivery, or
        distribution of food products or for other
        uses that would allow food banks to increase
        the amount of food they can receive and
        distribute, with the allocation process for
        this $1,000,000 to be developed by the
        department in consultation with the
        Emergency Food Assistance Advisory Board.
    6.  The State Department of Social Services
        shall collect and analyze data on foster
        family agency (FFA) and non-relative foster
        family home (FFH) placements, including but
        not limited to, statewide and county-
        specific utilization patterns and historic
        trends; rates of payment, including
        specialized care increments; and comparative
        data on the characteristics of (a) counties
        and their placement policies, (b) the
        children placed in each kind of placement,
        including demographic information as well as
        information such as the number of prior
        placements, length of stay, and treatment
        goals and (c) the FFA and non-relative FFH
        placements in terms of purpose, number of
        certified beds, number of children in
        residence.
          The department shall report its findings
        to the appropriate fiscal and policy commit-
        tees of the Legislature by June 30, 2000.
        This report shall include recommendations
        for a second phase of study, to begin June
        30, 2000, to determine how FFA and non-
        relative FFH placements are and should be
        utilized to meet the needs of children and
        families. The second phase shall include, at
        a minimum, the identification and comparison
        of (a) county and FFA standards of practice
        for certification or licensure and oversight
        of homes and the services and supports
        provided to parents, (b) the criteria
        counties use to determine whether to place
        children into an FFA or non-relative FFH,
        (c) how often and why counties place children
        into FFA homes when the child is assessed as
        needing an FFH placement, (d) the reasons
        that foster parents choose to enroll and re-
        main with the county or an FFA, and (e) the
        outcomes for children placed out of home in
        these facilities, both during the placement
        and after they have left placement.  The
        department shall convene a steering committee
        to provide direction for this study.
    7.  The State Department of Social Services shall
        report during budget hearings for the 2000-01
        fiscal year on its implementation of regional
        foster care ombudsman offices, including, but
        not limited to, the process by which it
        established north and south regional offices
        and data collection procedures.  The depart-
        ment shall also provide preliminary informa-
        tion on the potential need for additional
        regional offices or staff, including at a
        minimum the number of calls received by the
        offices, the time of day when calls are
        received, and the resolution of these calls.
    8.  Upon the approval of the Department of Finance,
        the Department of Social Services may transfer
        funds to this item from Items 5180-002-0001,
        5180-101-0001, and 5180-141-0001, inclusive of
        amounts payable from the federal trust fund, for
        the purpose of advance implementation activities
        performed on behalf of the Department of Child
        Support Services.  The Health and Human Services
        Agency shall concur in any transfers made under
        this provision.

  SEC. 12.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
  SEC. 13.  Section 1 of this act, amending Section 17710 of the
Family Code as added by Assembly Bill 196 of the 1999-2000 Regular
Session, shall become operative only if Assembly Bill 196 of the
1999-2000 Regular Session is chaptered and adds Section 17710 to the
Family Code, in which case Section 3 of this act, amending Section
15200.95 of the Welfare and Institutions Code, shall remain operative
only until the operative date of Section 17710 of the Family Code,
at which time Section 1 of this act shall become operative.
  SEC. 14.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order that a federally required statewide child support
automation system be developed and implemented as soon as possible
and to avoid the imposition of more federal penalties than necessary,
it is necessary that this act take effect immediately.
